Some shops have turned away from repairing plastics because of the liability involved, and it is not considered a major profit procedure. But let's put the math to it.
In past years, many shops have turned away from repairing plastics because of the liability involved, and it is not considered a major profit procedure. If the technician spends three hours repairing a plastic bumper cover, and that repair fails a year from now, many shops have had to suck it up and replace the bad repair with a new part. It is understandable that this is not a good outcome for anyone involved – customer, insurer or repairer. That sounds easy, but put the math to it.
Many shops have simply stopped repairing bumper covers because of the sheer economics of lower priced parts. Here is an example of replacement parts pricing versus repair.A typical repair would be a two-inch tear on the corner of 2006 Ford Focus Front bumper:
- Retail OEM price – $260
- Retail aftermarket – $123
- Remanufactured – $213
- Repaired – $132.50
Note that the "Repaired" pricing includes what is covered in the P-pages and parts text to do this repair:
Repair Bumper.... 3.0 hrs at $40 = $120
The economics of this particular bumper make it impossible to repair this part, however, not all parts are created equal.
The proposal here is to stop writing this up and calling this a repair. Let's call it what it really is. If an outside vendor can call a repaired part a remanufactured part, then so can we. The key here is to be comfortable explaining this process to the customer. So, call it what you want, but make sure you have the word track down and can explain and defend your position to anyone that needs to know.Here are some examples of what this process might be called as opposed to a "repair":
- Recycling an existing part
- In-house remanufactured part
- Remanufactured part
- Sublet
- Internal sublet item
- Santa Clause part
Now let's factor in what we have been proposing. Instead of replacing the part for $2,200, the proposal is to recycle the existing part. For this process we have acquired a damaged hatch from a donor vehicle and sectioned the part around the lock cylinder, using techniques acquired in the I-CAR Plastics Repair Course material. We now can refinish the area and blend it within the repaired panel. We can recycle the existing part for $1,100.
This all sounds easy and fast, but anyone who has done it knows it doesn't always work that quickly. To make this a successful "sale," the following things must take place:
- Full disclosure — Customers have a legal right to know what is being done to their vehicles. In fact, it can constitute fraud if we repair a vehicle in any manner other than what the customer has agreed to by signing the Repair Order.
- Terminology — Use terminology that you are comfortable discussing at a level that the consumer and all others involved will understand. But whatever you decide on, make sure that the consumer understands the process.
- Technically correct procedures — If we repair this part in a haphazard fashion, we deserve to re-do it. Technical expertise in this area is critical in order to avoid repair failures.
- Guarantee or warranty — As a professional repair facility you must be willing to warrantee your work. Because of the nature of this repair it is worth a lot to bear that risk.
Bring value to the table
If we save our customer half of the repair bill, why wouldn't we be entitled to the other half? All too often, if there is an insurer involved, they can see the savings of a recycled part, for sure, but they still want to go back to the old worn out adage of "how many hours will it take?" For this process, we are not counting hours; we are counting dollars. We just saved you $1,100, and for that you want to pay an hourly rate, and still want the repairer to accept all of the guarantee and warranty issues? Fair compensation does not merely stop with the amount of "hours" we spend doing something, but rather, what value does this procedure bring to the table?
If a repair fails after the vehicle has been delivered, who stands for the cost of the repairs? It is not just a matter of the cost of the part, but the cost to R&R and refinish the part for the second time and the cost of "doubt" from our consumer. Try putting a price tag on that.
With today's chemistry in plastic repairs, most would agree that if a repair is done properly it will stand up to normal wear and tear and normal use. The culprit seems to be the techniques used in the repair methods. Many problems arise from the repair process because the parts were not cleaned properly or we have chemical incompatibility. But for the sake of this article let's assume that the repairs have been made properly.DeWayne Miller of Miller Bumper and Supply in Amarillo, Texas, has been in the auto body supply industry for almost four decades, and has seen several industry transformations during those 40 years, from replating chrome to recycling plastic. Miller offers this explanation for recent industry trend changes: "In the past decade, more and more plastic bumpers are being repaired because of insurance related economic demands. In other words, it's cheaper to fix the part than to replace it and the insurance industry understands that better than anyone and they like that."
Miller adds: "A repairable bumper is a good product if it is repaired and prepped properly. One of the biggest drawbacks or complaints about these parts is that the original finish does not get sanded properly and peeling of the new finish can occur or peeling of the new primer is sometimes difficult to sand." Miller stands behind his product line and insists that if repairs and preparations are done correctly, the end result will be a high quality repair.
Most technicians and quality control people have the same ideas about aftermarket parts usage. They are better than in years past but are still not of the quality of OEM products. The material is often a mixture of recycled plastic and it is difficult to hold the painted product to any sort of warrantee standard.
John Garley is an estimator at Danlar Collision & Glass in Albuquerque, N.M., and has been with that company for nine years. Garley has this to say about remanufactured plastic parts. "One of our direct-repair relationships insists that we use re-manufactured plastic parts. We oblige them but sometimes it is very difficult as we will have to use three different parts on occasion to get one to fit properly. There are several recurring problems with the use of these parts: they don't fit; repaired parts are thicker than original; repairs fail after vehicle is delivered; paint peeling from poor prep work; and, warranty issues. ... We had one technician that used to remove all plastic parts and cut them in half so they couldn't be recycled. That technician has since stopped that practice."
Garley adds that "the worst part of using these types of parts is that it is impossible to offer a lifetime or OEM-comparable warranty on the work. If the remanufactured part fails, the customer assumes that the rest of the repair must be inadequate as well.
This is one area that probably needs to be on the TV program "Myth Busters." Whoever came up with the idea and the "policy" that states, "we don't pay for blending to adjacent plastic parts" has obviously not taken a close look at the vehicles that they drive or are being driven on the streets and highways in modern day America; and everywhere else. A paint mismatch is a paint mismatch and cannot be called anything else, regardless of the substrate material that is under it. This old wive's tale is often used as an excuse to either not do the work or not pay for it. In either case, the customer is left staring at a paint defect that not only affects the overall quality of the job, but also dampens the repair facility's reputation and devalues the property.
The repair methods suggested here help to eliminate this paint mismatch on repairable plastic parts. For example, let's say we have an '06 Lexus front cover with minor damage to the center of the part. If we elect to repair this part rather than replace it, here's the math:
Front Cover = $266
If we simply recycle this part we have $456 to work with. Call it recycling of existing parts; call it a repair or call it whatever you are comfortable with in defining to the customer what it is that you are doing.
Re-thinking how the estimate is written is important to this entire process. Whether you repair the existing part, recycle the existing parts or replace the part with your own re-manufactured part or sublet this repair to an in-house repair technician or whatever other creative way to write the estimate, you must be comfortable in explaining what you are doing and making sure that the estimate and the final billing reflect exactly what has been done. Full disclosure to the customer is absolutely essential so that there is no finger pointing during the vehicle repair and warranty period.
For shops, there are advantages by gaining greter control over the repair and warrantee process.
For insurers there are cost advantages. Cost is less than replacement with quality OEM parts and often the adjacent panels do not have to be painted for the sake of matching the paint.
And for consumers less cost and less down time without the vehicle will make them happy.
And we can't forget the environmental advantages that come from having fewer plastic parts in the dump and fewer paint fumes in the atmosphere.
The industry will change and only those willing to adapt will be left standing in the end.
Keith Schieffer is Technical Team Leader at Universal Technical Institute in Houston. He is an I-CAR Instructor and ASE Master Collision Technician.